Kirin Holdings Co. Ltd. · TSE:2503
Kirin — Nomura Investment Forum 2013
21 slides from Kirin's conference presentation, December 2013
Slide 1: Building shareholder value through organic growth
Building shareholder value through organic growth Nomura Investment Forum 2013 December 2013 Kirin Holdings Company, Limited 0
Slide 2: Management Summary
Management Summary Focusing on building enterprise value through organic growth, having already boosted group to new scale and trajectory through M&A First year of 2013-2015 MTBP: despite a tougher-than-expected environment, implementing brand building initiatives for sustainable growth and star
Slide 3: KIRIN at a glance
KIRIN at a glance Emerging ～High growth～ Emerging ～Large scale・ High growth～ Beer #1 Developed Dairy #1 ～Stable ・High profitability～ Beer #2 Carbonated #3 *Source： Kirin research 2
Slide 4: Well-balanced, global business portfolio
Well-balanced, global business portfolio Pharmaceuticals Others and Bio-chemicals 15％ Pharmaceuticals and Bio-chemicals Brazil- Brasil Kirin 8％ Sales Japan 36％ Operating Japan Overseas integrated integrated integrated 2013(E) Income 2,280bn beverages beverages 2013(E) beverages Oceania- 52％ Brazil-
Slide 5: KV2021 Business Model
KV2021 Business Model Sustainably increase enterprise value through organic growth Organic High value Sustainable Insightful & Innovative Diversity within “One Kirin” Values “Passion & Integrity” Underpinned by shared values, leverage Kirin’s diversity to enable autonomous management by businesses c
Slide 6: 2013-2015 MTBP Strategy and progress
2013-2015 MTBP Strategy and progress Basic policy Establish and deploy Kirin Group’s Brand-Centered Management Deliver results according to the business stage of each region Foster competitiveness and powerful brands that help Kirin promote further growth in the Japanese integrated beverages busi
Slide 7: Strong cash generation
Strong cash generation Continuing to produce stable, high levels of cash flow （Million yen) 300,000 ¥700bn ¥700bn plus plus Operating cash flow 200,000 100,000 0 ▲ 100,000 ▲ 200,000 Approx. Approx. ▲ 300,000 ¥300bn ¥300bn Investment cash flow ▲ 400,000 2006 2007 2008 2009 2010 2011 2012 2013 - 2015(
Slide 8: 2013-2015 MTBP Financial strategy & plus alpha activities
2013-2015 MTBP Financial strategy & plus alpha activities (Plus α initiatives in red) Enhance returns to shareholders Increase dividends in line with Operating cash flow growth in normalized EPS Consolidated payout ratio of 30% ¥700bn plus FCF FCF Additional returns to shareholders, including shar
Slide 9: Shareholder returns climbing with focus on organic growth
Shareholder returns climbing with focus on organic growth Changes in dividend per share Focus on organic growth （¥） 40 Last major acquisition 35 Consolidated payout ratio of 30% 30 based on growing normalized EPS 25 20 36 15 29 27 25 23 23 10 21 17 5 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 20
Slide 10: Mature Market Japan: Well positioned to meet key external challenges
Mature Market Japan: Well positioned to meet key external challenges Foreign currency Geographical balance enables higher fluctuations input costs to be offset by other Group business Wavering consumer Not only pricing polarization but sentiment with imminent also greater consumer selectivity consu
Slide 11: Mature Market Japan: Clear advantages from new organization
Mature Market Japan: Clear advantages from new organization Kirin New integrated beverages business structure in Japan (From Jan. 2013) Alcoholic beverages Soft drinks Kirin Brewery Mercian Kirin Beverage UP DOWN Marketing opportunities Costs Customer engagement Inefficiency Product line-up Time lag
Slide 12: Mature Market Japan: Growing with R&D and consumer insight
Mature Market Japan: Growing with R&D and consumer insight UP Value UP Profitability More health-friendly Making beer more fun to drink Domestic outlets tripled YoY Also in Korea, Taiwan, Hong Kong, China (Shanghai), Singapore, US (LA, Florida), Plasma lactic acid bacteria®* Germany and England *
Slide 13: Mature Market Japan: Significant cost savings
Mature Market Japan: Significant cost savings ¥15 bn+ Target cost savings during 2013-2015 MTBP MORE Production & logistics efficiency Depreciation & amortization costs (optimize CAPEX) LESS Manufacturing costs (improve processes) Raw material costs (joint procurement) Integrating Integrating plants
Slide 14: Mature Market Australia: New demand from alcohol growth categories
Mature Market Australia: New demand from alcohol growth categories Lion outperformed market volume growth Overall Overall +9.7% Market (-1.9)% Tap Tap King King Lion has strong brands in growing categories International International Market premium premium beer beer +8.3% Market Craft Craft beer bee
Slide 15: Mature Market Australia: Focusing on profitability improvement
Mature Market Australia: Focusing on profitability improvement Compensate for destabilization of white milk market by leveraging leadership in flavored milk Optimize production sites: 31 sites → 16 sites by 2015 “Dare” No.1 in Dairy Beverage Pursue efficient logistics No.4 in NARTD Unify juice
Slide 16: Growth Market Brazil: Outperforming the market
Growth Market Brazil: Outperforming the market Generating new sales in long-term growth market, despite current dip in economy (%) 13.0 Sales revenue* 11.0 9.0 7.0 Super premium Premium Volume (Beer) 5.0 3.0 1.0 Volume (Beer) -1.0 Market Market -3.0 Standard Discount 2013 1Q 2013 2Q 2013 3Q *Beer +
Slide 17: Growth Market Brazil: Investing for expansion
Growth Market Brazil: Investing for expansion Creating efficient structure to capture demand now and when economy resumes growth Efficiency (low-cost operations) MORE Consumer demand (proactive brand investment) Production (new canned beer lines in Northeast) Reach (new distribution network) If you
Slide 18: Growth Market SE Asia: Strategizing after Fraser & Neave exit
Growth Market SE Asia: Strategizing after Fraser & Neave exit China Resources Kirin Beverages (Greater China) Company Kirin (China) Investment Interfood (Vietnam) San Miguel Brewery (Philippines) Kirin Holdings Singapore Siam Kirin Beverage (Thailand) now being produced at San Miguel Brewery 17
Slide 19: Growth Market China: Strong momentum at China Resources Enterprise joint venture
Growth Market China: Strong momentum at China Resources Enterprise joint venture Competitive brands in growing categories Sales well ahead of target 6 billion RMB 4.6 billion New plant operating at Changsha RMB +50% 2012 3Q 2013 3Q 2015(E) Two more plants opening after November 18
Slide 20: Optimizing global Kirin Group management
Optimizing global Kirin Group management Technology transfer Corporate governance: International Advisory Board Australia Personnel exchanges Brazil Joint procurement From CSR to CSV Vietnam 19
Slide 21: This material is intended for informational purposes only
この資料は投資判断の参考となる情報の提供を目的としたものであり、投資勧誘を目的としたものではありません。 銘柄の選択、投資の最終決定は、ご自身の判断でなさるようにお願いいたします。 This material is intended for informational purposes only and is not a solicitation or offer to buy or sell securities or related financial instruments. 20
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